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The UAE Ministry of Finance (MoF) has announced the introduction of a Value Added Tax (VAT) across the country, effective January 1, 2018.

VAT is a form of indirect tax on consumption or use of goods and services, applied at the point of sale and charged on applicable transactions. A registered business collects VAT charged to customers on supply of goods and services, and pays VAT on goods and services purchased from its suppliers. The difference between the VAT collected from customers and the VAT paid to suppliers is then remitted to the Federal Tax Authority (FTA).